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Schedule A of the Tax Report form lists all deduction codes regardless of the Revenue Code printed. Please refer to the following table for the allowable deductions for each revenue activity.

Activity
Code 
Activity Description Allowable Deduction Codes 
1 Transportation  D, H, I, J 
2 Mining, Quarrying, etc. D, F, H, J 
3 Timbering, etc.   D, F, H, J 
4 Utilities   B, D, F, H, J, Q 
5 Communications   B, D, F, H, J, Q 
7 Manufactured Housing   D, F, H, J 
8 Advertising   B, D, F, H, J 
9 Publishing   B, D, F, H, J, Q 
10 Job Printing   B, D, F, H, J, O, Q 
11 Restaurants   B, D, F, H, J, Q 
12 Amusements   D, F, H, J 
13 Rental of Real Property   D, F, H, J, Q 
14 Hotel/Motel   D, F, H, J 
15 Construction Contracting   C, F, H, J, S 
16 Rental of Personal Property   D, F, H, J, Q 
17  Retail Sales   A, B, D, E, F, G, H, I, J, M, O, Q
18 Sales of Food for Home Consumption     B, D, E, F, H, J, O, Q 
20 Use Tax Purchases   None
25 Transient Lodging   None

Deduction Codes and Descriptions
A Retail Service Labor
B Sales for Resale
C 35% Construction Contracting
D Discounts & Refunds
E 50% for Retail Sales to the US Government; 100% if Manufacturing
F Sales Tax Collected
G Gasoline Sales
H Bad Debts Charged Off
I Prescription Drugs & Supplies
J Other. Specify in Deduction Code Box
M Sales of Exempt Machinery and Equipment
O Sales Ordered & Shipped out of Arizona
Q Sales to Qualified Hospitals
S Construction Contracting Subcontracting 
Last updated: 3/15/2012 1:47:49 PM